NY A07098

Requires public owners (state agencies, public benefit corporations, political subdivisions) to pay subcontractors directly rather than routing payments through contractors for public construction projects

Subcontractors must submit requisitions for progress payments directly to both the public owner and the contractor, with the public owner responsible for approving and making payments

Public owners may retain up to 5% of progress payments to subcontractors, or up to 10% if no performance and labor/material bonds are required

Defines "subcontractor" as only those subcontractors reporting directly to the main contractor, excluding lower-tier subcontractors (subcontractors of subcontractors)

Amends both the State Finance Law (section 139-f) and General Municipal Law (section 106-b) to create uniform direct payment requirements across state and municipal public works contracts